Sajjid Chinoy
J.P. Morgan
Abstract:
After becoming the epitome of fiscal discipline in the mid-2000s, India’s state finances have markedly worsened in recent years and risks have increased going forward. What has driven the deterioration? How pervasive is it? More importantly what are the implications? While there has been much analysis of how worsening state finances impact the consolidated deficit and debt dynamics, we focus on how worsening state finances have caused state bond spreads to spike and show how these higher borrowing costs spill-over onto corporate bond spreads. This, in turn, pushes up borrowing costs for the private sector, and risks crowding out of the corporate bond market, precisely when the banking sector is under stress. We discuss these developments in the larger macroeconomic context at the moment, and suggest policy and market measures to rein in state fiscal deficits.
Date: June 13, 2017
Time: 04:30 P.M.
Venue:
NIPFP Auditorium, Ground Floor
Main Building
National Institute of Public Finance and Policy,
18/2 Satsang Vihar Marg, Special Institutional Area,
New Delhi-110067(INDIA)
Location:
View Larger Map
Note:
Those who are interested may please confirm your participation at bins.sebastian@nipfp.org.in
J.P. Morgan
Abstract:
After becoming the epitome of fiscal discipline in the mid-2000s, India’s state finances have markedly worsened in recent years and risks have increased going forward. What has driven the deterioration? How pervasive is it? More importantly what are the implications? While there has been much analysis of how worsening state finances impact the consolidated deficit and debt dynamics, we focus on how worsening state finances have caused state bond spreads to spike and show how these higher borrowing costs spill-over onto corporate bond spreads. This, in turn, pushes up borrowing costs for the private sector, and risks crowding out of the corporate bond market, precisely when the banking sector is under stress. We discuss these developments in the larger macroeconomic context at the moment, and suggest policy and market measures to rein in state fiscal deficits.
Date: June 13, 2017
Time: 04:30 P.M.
Venue:
NIPFP Auditorium, Ground Floor
Main Building
National Institute of Public Finance and Policy,
18/2 Satsang Vihar Marg, Special Institutional Area,
New Delhi-110067(INDIA)
Location:
View Larger Map
Note:
Those who are interested may please confirm your participation at bins.sebastian@nipfp.org.in
No comments:
Post a Comment